If the Marginal Cost for the State of Montana to Increase

question 151

Multiple Choice

If the marginal cost for the state of Montana to increase the speed limit on its interstate highways to 100 mph is estimated to be $500 per day,then Montana should increase the speed limit to 100 mph

• A)only if the marginal benefit received each day is less than $500.
• B)as long as the marginal benefit received each day is just equal to or greater than $500.
• C)as long as the daily marginal cost is lower than it had been before the speed limit increase.
• D)unless the marginal benefit received falls to zero.

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